Melvin Gordon, Scion of Tootsie Roll Empire, Dies at 95
Graphic by Angelie Zaslavsky
Tootsie Roll Industries Inc Chief Executive Melvin Gordon died at the age of 95 after a brief illness, the company said, sparking speculation that the iconic Jewish candy maker could be acquired.
Tootsie Roll’s shares rose as much as 8 percent, to a 17-month high of $33.28.
Melvin Gordon Image by sec
The board named Gordon’s wife, Ellen Gordon, who is the company’s chief operating officer, as CEO.
Tootsie Roll, founded in 1896, has a market capitalization of $1.94 billion as of its Tuesday closing price, according to Thomson Reuters data.
“There’s been speculation for years that it’s going to be sold,” Rhone Trading Partners analyst Timothy Chen told Reuters, adding that Gordon’s death could clear the way for a takeover.
Gordon, who was CEO since 1962, was the company’s second-largest shareholder, with a 21.9 percent stake as of Dec. 12, according to Thomson Reuters data.
His wife Ellen is Tootsie Roll’s top shareholder, with a 26 percent stake as of March 14.
The company’s shares were up 7 percent at $32.97 in afternoon trading. The stock had lost 3 percent of its value in 2014.
The company was founded by Jewish Austrian immigrant Leo Hirschfeld. The company was taken over by Ellen Gordon’s parents after it went public in the 1920s.
In 1968, the company moved its headquarters from Hoboken, N.J. to Chicago.
Among its iconic brands are Tootsie Rolls, Dots, Charms, Double Bubble, Charleston Chew, Cella’s Chocolates, and Sugar Babies.
Melvin Gordon’s sister, Natalie, who died in 2010 was once a top official with the New York Jewish federation.
I’m personally matching all gifts to the Forward, up to $36,000. Can I match your gift now?
Hello, fellow Forward reader! I’m Joel Brown, a Forward reader and supporter for more than 15 years, and currently the chair of the board of directors.
I’m an avid Forward reader because it ticks so many of my essential boxes: excellent journalism, Jewish focus and diverse viewpoints. In today’s political climate, what I most appreciate is the Forward’s independence — made possible by the generosity of its membership.
The Forward is committed to bringing you unbiased, nuanced Jewish news. From my position as board chair, I see an exciting future as we expand our position as the definitive independent voice of contemporary American Judaism.
— Joel Brown, Forward board chair
Support our mission to tell the Jewish story fully and fairly.
